Building a construction business takes focus, dedication, and hard work. When you get to the point where you want to step back from running a successful business, you might start thinking about selling it.
Of course, if you sell, you want to get the best price possible. To do that, you should make your business as desirable to a buyer as possible. Here are some tips for making your construction business sellable.
Have a Solid Contractor Network
Many construction business buyers are looking for turnkey purchases. They will expect to be able to take over operations without interruptions. And if they do, they’ll want contractors who do solid work.
If your company has a mix of employees and independent contractors, ensure you have great relationships with reliable contractors before you sell. Contractors may work for multiple companies at once, so if they are dissatisfied with your company, it’s easy for them to prioritize other businesses, making it difficult for your business to function effectively.
Know Your Company’s Size and Value
Understandably, potential buyers will want to know specifics about your company. Before selling your business, make sure you have accurate data on the following:
- Your company’s size
- Your company’s annual revenue
- The number of employees you have
- Your business’s valuation (start with our free business valuation calculator for a head-start)
Detailed data records show potential buyers that your company is organized and professional. Also, knowing your business’s value can ensure you and your broker set an accurate buying price.
Know Who Might Buy
In many cases, construction businesses are sold to competitors. After all, successful companies wanting to expand often absorb another company with an existing infrastructure because the process is easier than starting from scratch. So if you’re selling your construction business, you might reach out to your contacts within the industry. Doing so may save on the time and expense of conventional advertising.
Update Your Technology
If you want your construction business to sell, it’s essential to distinguish yourself from the competition. One great way to do so is to keep up with current technology in your field. If a potential buyer is comparing two businesses, they’re more likely to purchase one that has already adopted and integrated cutting-edge technology like the following:
- Building information modeling (BIM) tools
- Cloud-based workflows
- Sustainability technology (solar panels, biodegradable materials, etc.)
- 3D-printed materials
Adopting these technologies proves you are invested in the success of your company and committed to quality work. As a result, you’ll likely have an easier time selling your business.
Employ Effective Management
In order to run optimally, a business needs efficient, effective management which focuses on people, processes, and performance. A solid management team will ensure that your company complies with all regulations and that your field and office operations are working optimally.
Considering Selling Your Business?
Selling a company is often much more complex than it looks. But the good news is that you don’t have to navigate it yourself. At Sunbelt Business Brokers, we work with owners of small and medium businesses to facilitate easy, profitable sales.
From valuation and advertising to finalizing the deal, our brokers will be with you every step of the way. We also maintain a network of interested buyers, increasing your chances of selling quickly. If you are considering selling your construction business or ready to sell, contact us for a free consultation and valuation today!